Hong Kong: Why a Funicular Carried Nearly the Entire City in Its First Year

By Travelog Editorial Team ยท Updated August 9, 2026

Victoria Peak, no UNESCO site but a genuine, government-managed viewpoint adjacent to Hong Kong's country park system, is reached by the Peak Tram, Asia's first cable funicular, which began service on May 30, 1888. On its first day, it carried 800 passengers; in its first year, roughly 150,000, nearly the entire population of Hong Kong at the time. The 1.27-kilometer journey rises from 28 to 396 meters above sea level in about 10 minutes, originally powered by coal-fired steam boilers, built after Scottish entrepreneur Alexander Findlay Smith proposed the system in 1881 to speed development of Hong Kong's hill districts.

Why carrying nearly the entire population in one year reveals genuinely immediate demand

Roughly 150,000 riders used the tram in its first year, against a population of similar size, a documented usage figure that shows the tram met genuine, pent-up demand from its very first year of operation, not a slow-building novelty.

Why coal-fired steam power, not electricity, drove the original tram

The tram was built using coal-fired steam boilers, period-appropriate technology that reflects its genuine 1888 origins, a detail that distinguishes the original system from its later modernized versions.

Why a private entrepreneur, not the government, initiated the project

Scottish businessman Alexander Findlay Smith proposed the tram specifically to spur hill-district development, a documented commercial motivation that's the tram's actual origin, not a public infrastructure project initiated by colonial authorities.

Getting there

Victoria Peak sits above central Hong Kong Island, reached via the historic Peak Tram from the Garden Road terminus.

The bottom line

Hong Kong rewards understanding the immediate popularity of the 1888 Peak Tram and the genuine commercial motivation behind its construction. Tian Tan Buddha and the Star Ferry are covered in full below.

  • Tian Tan Buddha 34 meters tall, 250+ metric tons, took 12 years to build (1981-1993), the world's tallest outdoor seated bronze Buddha.
  • Star Ferry Operating since 1888, still carries 26 million passengers a year across Victoria Harbour, named one of National Geographic's '50 Places of a Lifetime.'